Financial Performance - For the fiscal year ending March 31, 2021, the company's revenue was HKD 1,216,700,000, an increase of approximately 4.7% compared to HKD 1,162,200,000 for the previous year[11]. - The gross profit for the fiscal year was HKD 96,400,000, a decrease of about 10.8% from HKD 108,100,000 in the previous year, resulting in a gross margin of 7.9% compared to 9.3%[11]. - The company's profit for the year was HKD 13,200,000, down from HKD 49,600,000 in the previous year, primarily due to a decline in profit margins in the trading segment and increased provisions for expected credit losses[11]. - Basic and diluted earnings per share were HKD 0.20, down from HKD 0.77 in the previous year[24]. - Total assets increased by 49.2% to HKD 1,442,600,000, primarily due to the issuance of convertible bonds[25]. - Current ratio improved to 14.19 times from 5.89 times year-on-year[30]. - Debt-to-asset ratio increased to 41% from 17% year-on-year[30]. - Income tax expenses decreased to HKD 7,000,000 from HKD 10,500,000, attributed to reduced profits from the lending and trading segments[23]. Dividends - The company does not recommend a final dividend for the fiscal year ending March 31, 2021, consistent with the previous year[13]. - The company adheres to a dividend policy that considers current and forecasted financial performance, available distributable profits, growth opportunities, and other relevant factors before declaring dividends[186]. Business Segments - The business is segmented into three identifiable divisions: lending, goods and commodities trading, and CBD extract trading[14]. - The lending division focuses on short-term private and corporate loans, with a strong emphasis on credit control and risk assessment[17]. - The trading division includes operations in both mainland China and Hong Kong, with a focus on goods and commodities[14]. - Revenue from the lending segment decreased from approximately HKD 89,700,000 to about HKD 87,800,000[18]. - The revenue from the goods and merchandise trading segment was approximately HKD 1,126,200,000, an increase from HKD 1,072,500,000 in the previous year, accounting for 92.6% of the group's total revenue[18]. - The segment profit from goods and merchandise trading was HKD 7,600,000, down from HKD 13,100,000 in the previous year[18]. Loans and Credit Management - The total new loans issued in the year amounted to HKD 57,500,000, a decrease from HKD 82,700,000 in the previous year[18]. - The number of new loans issued during the year was 8, down from 18 in the previous year[18]. - The company has implemented clear credit policies and monitoring measures to ensure the recoverability of loans[17]. - The lending division will adopt a cautious approach in granting new loans and assessing existing receivables due to market conditions[48]. - The total receivables amount to HKD 538,113,869 as of March 31, 2021, compared to HKD 518,384,664 in 2020, with an expected credit loss provision of HKD 11,873,611[199]. - The expected credit loss provision for receivables was HKD 1,059,044 in 2020, indicating a significant increase in credit risk assessment by management[199]. - The company emphasizes the importance of assessing credit risk and determining expected credit loss provisions, which involves significant management judgment and assumptions[199]. Expenses and Financial Management - General and administrative expenses increased by 10.90% to approximately HKD 45,800,000, primarily due to legal and professional fees related to the CBD extraction business[21]. - Financial expenses rose significantly to approximately HKD 18,000,000 from HKD 5,000,000, mainly due to interest from convertible bonds issued[22]. Corporate Governance - The company has a strong focus on corporate governance, with various committees in place to oversee audit, nomination, and remuneration matters[98]. - The company has adhered to the corporate governance code as stipulated in the Listing Rules Appendix 14 for the year ending March 31, 2021[121]. - The company has adopted the standard code of conduct for securities transactions as per Listing Rules Appendix 10, applicable to all directors and senior management[126]. - The company confirms that all directors have complied with the standard code throughout the year and up to the report's publication date[127]. - The company has a commitment to high standards of corporate governance to ensure decisions are made in the best interests of shareholders[120]. - The board consists of nine members, including three independent non-executive directors, ensuring diverse professional backgrounds and industry experience[131]. - The board has established a risk management and internal control system to evaluate and manage risks associated with achieving strategic goals[142]. - The company has a clear procedure for directors to seek independent professional advice at the company's expense[129]. - The audit committee is responsible for reviewing the group's financial information and overseeing the financial reporting system, risk management, and internal control procedures[170]. Shareholder Information - Major shareholder Yunnan Baiyao Group holds 4,737,482,724 shares, representing 73.47% of the issued share capital as of March 31, 2021[89]. - Shanghai International Trust holds 1,937,984,496 shares, representing 30.05% of the issued share capital as of March 31, 2021[89]. - The total number of shares held by director Zhou Hong is 495,404,000, representing 7.68% of the issued share capital[88]. - The total number of shares held by director Fang Ke is 349,068,000, representing 5.41% of the issued share capital[88]. - The company maintains a public shareholding percentage above the minimum required by the stock exchange throughout the year[95]. - Shareholders can request a special general meeting if they hold at least 10% of the paid-up capital, as per Bermuda company law[187]. - The company provides a platform for shareholders to submit inquiries to the board, enhancing communication and transparency[188]. Future Plans and Investments - The company anticipates continued growth in procurement orders from trade customers, which is expected to drive revenue in the upcoming periods[11]. - The company aims to diversify its product offerings in cosmetics and personal care, expanding supplier networks and customer bases[49]. - The company continues to seek suitable potential investment opportunities to diversify its business portfolio, which aligns with the best interests of the company and its shareholders[53]. - The company is preparing to enter the cannabis cultivation industry and establish a cannabis farm, having signed a non-binding memorandum of understanding with Yunnan Baiyao Group on April 23, 2021[51]. - The joint venture will engage in the industrial hemp value chain and supply chain, with the company overseeing all major matters related to hemp cultivation[51]. - By July 30, 2021, the company and Yunnan Baiyao Group are expected to negotiate the terms and conditions for the establishment of the joint venture[52]. Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position and performance accurately as of March 31, 2021[196]. - The audit committee reviewed the internal control system's effectiveness and found no significant deficiencies, although recommendations for improvement were made[175]. - The company has established a policy for timely handling and disclosure of inside information, ensuring compliance with regulatory requirements[175]. - The internal audit function is conducted by professionals with relevant expertise, ensuring independent evaluation of risk management and internal control systems[179]. - The auditor issued an unqualified opinion regarding the related party transactions, confirming compliance with the company's pricing policy and regulatory agreements[82].
云白国际(00030) - 2021 - 年度财报